Solar module manufacturer Solartech Energy Corp (昇陽光電) reported a 50 percent year-on-year decline in revenue for last month, as demand from India slumped after the country proposed a 70 percent tax on solar manufacturing equipment imports.
Revenue plunged to NT$299 million (US$10.01 million) from NT$598.75 million in May last year, the company said in a filing with the Taiwan Stock Exchange on Friday last week.
On a monthly basis, revenue shrank 17.54 percent from NT$362 million, it said.
Last month’s revenue hit the lowest level in about five years, as the solar industry is experiencing a prolonged oversupply, which prompted solar prices to drop to below most companies’ manufacturing costs.
“A delay in solar module shipments dragged the company’s revenue down last month,” Solartech said. “On top of that, orders from India have reduced significantly as the country is mulling whether to levy a high tax on solar imports.”
The decline is also due to output reduction, as a fire that broke out in October last year damaged one of its production lines, the company said.
Aside from the damaged production line, other manufacturing equipment is being fully utilized, it added.
The company said it expects demand to rebound next month as India is widely anticipated to halt the heavy tariffs on solar imports.
DANEN REVENUE RISES
Separately, solar wafer maker Danen Technology Corp (達能) reported that its revenue grew 27.61 percent annually to NT$67.43 million last month from NT$52.84 billion a year earlier, but dropped 9.98 percent from NT$74.9 million in April.
“Solar wafer demand lost steam last month as a solar system installation spree in China did not happen ahead of the expiration of June 30 as we expected,” Danen said in a statement.
Danen said it remains conservative about polysiliocon solar wafer outlook, as demand remains bleak and prices are still falling.
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